Company Reports

Richemont delivered a very strong first quarter with 20% constant-currency revenue growth, led by Jewellery Maisons (up 24%), but all other segments contributing strongly. Markets reacted positively, sending shares up 6%.

Wide-moat Richemont is the number-two global luxury goods conglomerate by revenue. Over the years, the group has amassed and developed a portfolio of very successful global brands, mostly in the hard luxury segment. Despite more pronounced cyclicality for the watch business, hard luxury goods benefit from much longer product cycles and lower fashion risk. Most of the group’s brands are at least a century old, have iconic collections lasting 40-80 years, and have historically commanded significant pricing power. Prices of more than $5,000 for most of Richemont’s watch brands and the prestige value attached to them protect the group’s watch business from the technological disruption. Additionally, control over distribution and high entry barriers in the jewelry business, along with diversification by brand, give us confidence that the company will be able to generate economic profits well into the future, despite cyclicality.

Wide-moat Richemont is the number-two global luxury goods conglomerate by revenue. Over the years, the group has amassed and developed a portfolio of very successful global brands, mostly in the hard luxury segment. Despite more pronounced cyclicality for the watch business, hard luxury goods benefit from much longer product cycles and lower fashion risk. Most of the group’s brands are at least a century old, have iconic collections lasting 40-80 years, and have historically commanded significant pricing power. Prices of more than $5,000 for most of Richemont’s watch brands and the prestige value attached to them protect the group’s watch business from the technological disruption. Additionally, control over distribution and high entry barriers in the jewelry business, along with diversification by brand, give us confidence that the company will be able to generate economic profits well into the future, despite cyclicality.

Richemont delivered solid results in fiscal 2025/2026 with 14% increase in Jewelry Maisons revenue at constant currency and 1% growth in Specialist Watchmakers. The operating margin stood at 20% despite raw material and currency headwinds.

Luxury sector shares were down by 1%-7% on March 2 following the US and Israeli attacks on Iran and Iran's retaliatory attacks on Israel and US bases across the Middle East (United Arab Emirates, Saudi Arabia, Qatar, Kuwait, and Bahrain).

Richemont reported another strong set of third-quarter sales, with an 11% constant currency increase, driven by Jewellery Maisons (up 14%) but with improving trends in watchmaking (up 7%).

Wide-moat Richemont is the number-two global luxury goods conglomerate by revenue. Over the years, the group has amassed and developed a portfolio of very successful global brands, mostly in the hard luxury segment. Despite more pronounced cyclicality for the watch business, hard luxury goods benefit from much longer product cycles and lower fashion risk. Most of the group’s brands are at least a century old, have iconic collections lasting 40-80 years, and have historically commanded significant pricing power. Prices of more than $5,000 for most of Richemont’s watch brands and the prestige value attached to them protect the group’s watch business from the emerging technological disruption. Additionally, control over distribution and high entry barriers in the jewelry business, along with diversification by brand, give us confidence that the company will be able to generate economic profits well into the future, despite cyclicality.

Richemont reported a solid improvement in second-quarter sales trends and a slight profit margin expansion despite raw material cost pressures. The market reacted strongly to the results, sending shares up 7%.

Wide-moat Richemont is the number-two global luxury goods conglomerate by revenue. Over the years, the group has amassed and developed a portfolio of very successful global brands, mostly in the hard luxury segment. Despite more pronounced cyclicality for the watch business, hard luxury goods benefit from much longer product cycles and lower fashion risk. Most of the group’s brands are at least a century old, have iconic collections lasting 40-80 years, and have historically commanded significant pricing power. Prices of more than $5,000 for most of Richemont’s watch brands and the prestige value attached to them protect the group’s watch business from the emerging technological disruption. Additionally, control over distribution and high entry barriers in the jewelry business, along with diversification by brand, give us confidence that the company will be able to generate economic profits well into the future, despite cyclicality.

Richemont reported continued solid development in constant-currency sales in the first quarter, with Jewellery Maisons' sales up 11% and the specialist watchmaker division’s sales down 7%. The share price is slightly up on the news.

Wide-moat Richemont is the number-two global luxury goods conglomerate by revenue. Over the years, the group has amassed and developed a portfolio of very successful global brands, mostly in the hard luxury segment. Despite more pronounced cyclicality for the watch business, hard luxury goods benefit from much longer product cycles and lower fashion risk. Most of the group’s brands are at least a century old, have iconic collections lasting 40-80 years, and have historically commanded significant pricing power. Prices of more than $5,000 for most of Richemont’s watch brands and the prestige value attached to them protect the group’s watch business from the emerging technological disruption. Additionally, control over distribution and high entry barriers in the jewelry business, along with diversification by brand, give us confidence that the company will be able to generate economic profits well into the future, despite cyclicality.

Richemont recorded strong full-year (up 7%) and fourth-quarter sales (up 7%), outperforming most peers, as the second half of the year proved stronger than the first, with the Jewellery Maisons segment outperforming (up 11% at constant currencies in the quarter and up 8% for the year).

We are maintaining our fair value estimates for stocks in our luxury coverage following the announcement of reciprocal tariffs by US President Donald Trump. Tariffs of 20% on the European Union, 10% on the UK, and 31% on imports from Switzerland are having the most impact on our coverage (as well as 36% tariffs on Thailand for Pandora, where most of its manufacturing takes place). Americans account for around 30% of global luxury consumption and sales exposures in the Americas for companies under our coverage range from the midteens to high 30s. Moncler, Prada, and Swatch are least exposed; EssilorLuxottica, Brunello Cucinelli, and Pandora are most exposed.

We keep our fair value estimate for wide-moat Richemont as the firm reported a strong improvement in sales trends in its fiscal third quarter. Having rallied almost 50% over the past year, outperforming most luxury peers, shares now look fairly valued to us.

We are maintaining our fair value estimate for wide-moat Richemont after attending a lunch meeting with the group’s CFO for sell-side analysts. The meeting provided some additional color on Richemont’s moat-supporting pillars and approach to managing the business in the current downturn.

We are maintaining our fair value estimate of CHF 154 for wide-moat Richemont as we incorporate slower revenue development and profit pressures during 2024 in our models. However, the hit from this is offset by time value of money and our long-term forecasts for the stock remain intact. We view shares as attractive as we believe current weakness is cyclical.

We are maintaining our fair value estimate for wide-moat Richemont as the company reported the sale of its Yoox Net-A-Porter stake to Mytheresa. Shares look attractive at current levels.

We maintain our fair value estimate for wide-moat Richemont as the company reported resilient sales trends in the first quarter in a more challenging industry backdrop. At current levels, shares look broadly fairly valued, trading at a small discount to our fair value estimate.

Wide-moat Richemont is the number-three global luxury goods conglomerate by revenue. Over the years, the group has amassed and developed a portfolio of very successful global brands, mostly in the hard luxury segment. Despite more pronounced cyclicality, hard luxury goods benefit from much longer product cycles and lower fashion risk. Most of the group’s brands are at least a century old, have iconic collections lasting 40-80 years, and have historically commanded significant pricing power. Prices of more than $5,000 for most of Richemont’s watch brands and the prestige value attached to them protect the group’s watch business from the emerging technological disruption. Additionally, control over distribution and higher entry barriers in the jewellery business, along with diversification by brand, give us confidence that the company will be able to generate economic profits well into the future, despite cyclicality.

We are maintaining our fair value estimate for wide-moat Richemont as the company reported rather solid full-year results, albeit weighed down by currencies. After strong performance year to date—up around 29% and ahead of luxury peers except for Prada—the shares appear approximately fairly valued. Richemont shares are still cheaper than those of wide-moat peers LVMH and Hermes and can be considered a core portfolio holding.